Financial Services
CBN waives guarantor requirement for N50 billion COVID-19 loan applications
Applicants to the N50 billion credit facility, who have successfully completed the application processes and submitted their account details, should expect credit alerts 48 hours afterwards.
The Central Bank of Nigeria (CBN) announced this evening that households and SMEs applying for the N50 billion COVID-19 Targeted Credit Facility would not be required to provide guarantors before the can access they can access the credit facility.
This is according to a very brief press statement that was posted on Twitter. The statement did not give any reason for the waiver.
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CBN waives the requirement for the provision of guarantors by Households and SMEs applying for its N50bn COVID-19 Targeted Credit Facility
— Central Bank of Nigeria (@cenbank) June 8, 2020
All applicants to the N50 billion credit facility, who have successfully completed the application processes and submitted their account details, should expect credit alerts 48 hours afterwards. If an applicant does not receive credit alert after 48 hours of submitting their account details, such an applicant should contact the CBN by calling 09010026900.
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“All successful Household and SME applicants who have submitted their account details for the CBN N50bn COVID-19 Targeted Credit Facility should expect their accounts to be credited within 48 hours of such submission, otherwise they should call 09010026900.”
Successful applicants who are yet to receive their loans have been advised to visit here. Such applicants were also informed to submit “their account details in any bank of their choice.”
Recall that the CBN N50 COVID-19 billion Targeted Credit Facility was unveiled by the apex bank in response to the Coronavirus pandemic. The credit facility is aimed at providing financial relief to households and small businesses as they cope with the economic fallouts of the pandemic.
Nairametrics earlier reported that loan disbursements would be determined based on the activity, cashflow, and industry size of the beneficiaries. Each eligible SME will receive a maximum of N25 million while qualified households can access a maximum of N3 million each.
Financial Services
Fidelity Bank announces closed period ahead of H2 financial statements release
Fidelity Bank Plc is expected to release its half-year 2020 financial statement on or before August 29, 2020.
Fidelity Bank Plc announced earlier today (Wednesday, July 1st, 2020) that it has commenced the preparation of its half-year 2020 financial statements.
A statement sent by the bank to the Nigerian Stock Exchange (NSE), said the financial statements would be sent to the Central Bank of Nigeria for approval, once the audit process is completed. All things being equal, Fidelity Bank’s H2 2020 financial statements will be made available to the public by August 29 this year.
In the meantime, the tier-2 bank said it shall observe a close period from today until twenty-four hours after the H2 financial statement is eventually released. The implication of this closed period is that all persons with insider knowledge of the company’s affairs shall be prohibited from trading the company’s shares. Part of the statement by the company said:
“Upon completion of the audit, the Audited Financial Statements shall be presented to the Central Bank of Nigeria for approval and thereafter, published in compliance with the provisions of the Nigerian Stock Exchange Rule Book and other relevant statutes and/or regulations. The Bank expects to publish its Audited Financial Statements for the Half Year ended June 30, 2020, on or before August 29, 2020.
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“In addition, the trading window for dealings on the Bank’s shares shall be closed to all insiders from July 1, 2020, until 24 hours after the release of the Bank’s audited Financial Statements for the Half Year ended June 30, 2020.”
Recall that Fidelity Bank Plc released its Q1 financial statement back in April this year which showed gross earnings at N51.1 billion compared to N48.4 billion in Q1 2019. Overall, both Profit before tax and profit after tax declined by 1% y/y to N6.6 billion and N5.9 billion respectively. Annualised RoAE however moderated to 9.8% in Q1 2020 compared to 12.0% in Q1 2019 and 13.3% in FY 2019.
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Fidelity Bank’s stock closed trading earlier today on the NSE at a share price of N1.70, dropping by -2.30% from a previous close of N1.74. Year to date, the stock has shed about -8%.
Financial Services
Focus on some key resolutions reached during Ecobank Transnational’s 32nd AGM
Note that this was the first time Ecobank Transnational Incorporated would be holding its AGM by proxies.
Ecobank Transnational Incorporated (ETI) held its 32nd Annual General Meeting (AGM) and an Extraordinary General Meeting on Tuesday, June 30, 2020. Attendance during these meetings was mainly by proxies, as part of the company’s adherence to COVID-19 preventive measures.
A statement released by ETI to the Nigerian Stock Exchange, as seen by Nairametrics, noted that a number of resolutions were reached during the meetings. For one, the company’s shareholders gave ratification to the co-option of the following new directors:
- Mr Deepak Malik, a representative of Arise B.V,
- Ms Zanele Monnakgotla, representing Public Investment Corporation, and
- Dr George Agyekum Donkor, representing Ecowas Bank for Investment & Development
READ MORE: UPDATED: Nigeria received $5.85 billion capital inflows in Q1 2020 –NBS
ETI’s shareholders also approved the resolution to renew/retain the services of professional services firms — Deloitte & Touche (Nigeria) and Grant Thornton (Côte d’Ivoire) — as the banking group’s joint auditors.
Meanwhile, as ETI proceeded to hold an Extraordinary General Meeting right after the AGM, more resolutions were reached. Shareholders approved the cancelation of a 2016 resolution on the consolidation of the company’s shares.
Nairametrics understands that in 2016, during an Extraordinary General Meeting after ETI’s 28th AGM, the company’s shareholders had reached a resolution which directed“that the nominal value of the ordinary shares of the company be increased from two point five (2.5) US cents per share to fifty (50) US cents per share, by consolidating every twenty (20) ordinary shares held into one (1) new ordinary share each and issuing in replacement thereof new ordinary shares of fifty (50) US cents each.” Apparently, this earlier resolution on share consolidation was canceled yesterday after four years.
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Finally, ETI’s shareholders, yesterday, voted in favour of amending the company’s articles of association and including a provision for electronic general meetings. Note that yesterday was the first time Ecobank Transnational Incorporated would be holding its AGM by proxies.
In its latest earnings report for Q1 2020, the banking group reported interest income of $340.1 million, marking a 5% increase when compared to $322.5 million in Q1 2019. On the other hand, ETI’s profit after tax for the period declined by 20% to $67.5 million, down from $84.5 million in Q1 2019.
The company’s stock is currently trading at a share price of N4.95 on the Nigerian Stock Exchange. Year to date, the stock has declined by more than 22%.
Financial Services
Here’s what will happen to Nigeria’s insurance sector in the short to medium term
The Nigerian insurance sector is expected to grow at a subdued rate in 2020 due to the COVID-19 pandemic.
The Nigerian insurance sector is expected to witness considerable growth in the medium to long term, despite an interruption in 2020 due to the COVID-19 pandemic.
In specific terms, players in the smaller life insurance segment of the market are expected to grow their collective premiums by 4.8% to N179.81 billion in 2020. This is a downwardly revised forecast due to the country’s weakened economic condition. Meanwhile, the life insurance segment is expected to grow its premiums to as much as N207.96 billion by 2024.
On the other hand, the non-life insurance segment of the market (which is significantly larger), is projected to grow its premiums by a revised 2.9% to N248.85 billion in 2020. In the medium term, growth in the non-life segment is expected to reach N321.53 billion in 2024.
Explore the Advanced Financial Calculators On Nairametrics
It should, however, be noted that these projected growths are not going to come about easily, mainly due to Nigerians’ general lack of enthusiasm for insurance. According to Fitch Solutions, premiums growth will continue to be limited due to expected low average earnings by the insurance firms.
Widespread poverty was identified as a major factor making it impossible for a lot of Nigerians to access insurance covers. But then again, some wealthy Nigerian are known to avoid spending on insurance covers. This general lack of enthusiasm is known to hamper growth in the Nigerian insurance sector. The report, therefore, called for more action to be taken towards educating Nigerians about the importance/benefits of both life and non-life insurance.
READ MORE: Lagoon and Blue Ocean narratives of Nigerian Insurance sector – Report
“With a market supported by the country’s steady economy and large population, Nigeria’s insurance sector will enjoy a period of growth and development over the medium and long term, albeit interrupted by a slower pace of growth in 2020 due to the effects of the coronavirus pandemic. The outlook for premiums growth, however, continues to be limited due to low average earnings and widespread poverty, which will weigh on insurance affordability. As even the more affluent middle-class consumers tend to avoid purchasing insurance, which hampers the growth of compulsory basic insurance lines such as motor vehicle insurance, Nigeria’s potential consumer base needs to be educated more about the benefits of both life and non-life insurance coverage to support more robust growth in the sector.
“In spite of Nigeria’s large population, only a small proportion purchases life insurance. Life premiums currently account for 41.9% of overall insurance spending in the country. Low incomes and a lack of understanding of the benefits of life insurance remain the most important obstacles facing life insurers. However, a recovering economy, coupled with rising employment and incomes, will drive demand for life insurance products over the forecast period,” part of the report said.
In view of the competitive and regulatory landscapes, Fitch Solutions noted that the insurance sector in Nigeria is replete with mostly small players. The highly fragmented nature of the market makes it very competitive, even though only a few really command a greater percentage of the market share. In total, there are approximately 57 insurance companies in Nigeria and the report forecasted that the number may shrink in the coming years due to possible mergers/acquisitions.
Note that the National Insurance Commission, NAICOM, had recently revised its capital requirements for various segments of players in the insurance. You may keep up with that development by clicking here.
In the meantime, foreign players have been showing serious interest in the Nigerian insurance sector. A typical example is the French insurance firm – AXA which has stakes in Nigeria’s AXA Mansard Insurance Plc. Other examples are South Africa’s Old Mutual Ltd and Sanlam Emerging Markets (Proprietary) Ltd. As Nairametrics reported, Sanlam recently took over full ownership of FBN Insurance Ltd after FBN Holdings Plc divested all its stakes in the insurance firm which used to be one of its many subsidiaries.
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Peter obatowose
June 9, 2020 at 12:27 am
Please what about the people that have submitted there guarantors form and collateral documents and have not received any further information or notice for the loan.
Iheanacho Ifeyinwa glory
June 9, 2020 at 11:01 am
I have submitted my application and my account details till now I have not received any massage on my email to know if i am eligible or not
Samuel Amantem
June 12, 2020 at 2:03 pm
Good day sir/madam, thks for good job you are doing, please send me the websites to apply for the cbn covid loan, l have been trying since but no way
Henry
June 13, 2020 at 11:48 pm
I had applied for loan no show since 21 05 2020
usman Idris Mahmud
June 16, 2020 at 7:49 am
Please how can I apply
Emmanuel Chukwuebuka
June 19, 2020 at 4:07 pm
please how did you apply
Musa sule
June 26, 2020 at 9:01 am
I need loan for business. I want to started block industry here in Abuja. Plz i need up-to 1.5millon
Salihu Abbas
June 13, 2020 at 5:48 pm
Pls guys which website am I to used to apply for the loan
Mujidat oyekunle ige
June 29, 2020 at 9:18 am
Please, how can I apply for the loan
Abdullahi Yusuf
June 15, 2020 at 1:59 am
are no see massage in my phone or email
Gbolahan Obadimeji Philips
June 19, 2020 at 4:08 pm
Can someone send me the link to the form? I have tried several times even the Microsoft aspect is problematic
Aminu Mohammed
June 29, 2020 at 11:35 am
I have submitted my application about two weeks ago,no message not notification about household loan
Anonymous
June 26, 2020 at 2:46 pm
How can I apply please
Anyike David
July 1, 2020 at 9:26 am
We need more opportunities to be giving to many Nigerians to apply for this loan.
Ehiowemwenguan Augustine
June 9, 2020 at 8:21 am
How can fg demanded such collateral from people he claim to help,is every body especially Nigeria farmers have people as level 12 up ward and above to stand as collecteral before an loan can be granted.Do you known we apply for covid 19 loan, after paying #3000 for process,we where told to go bring our mobility documents,our gaurantor Bvn and guarantor from level 12 upward to stand for us. Over a month now we applied until now we are still looking for gaurantor inlevel 12 and above,and they are not ready to release their Bvn even calling us 419.
Uthman El-yazaki
June 17, 2020 at 3:44 pm
Can Someone please send me the website for the covid-19 loan application?
Yekeen sikiru kayode
June 9, 2020 at 10:24 am
There have send me approval message in my SMS box,I enter my browser to confirm it, there tell me to check back later… Please help me find solution sir..
Anonymous
June 9, 2020 at 10:47 am
What of the case whereby you are told that you are receiving the loan on a 9% interest rate at a center. That is if you’re going for #500,000 loan,you will be paying #45000 as monthly interest. Then #45000 in 12 months is #540,000 and in 3 years when the loan elapses, you are paying #1,620,000 as interest for a #500,000 loan. This is too much na!!!. Some years back, financial aid given to Farmers by fg usually where at very low or no internet rate. The interest payable for #500,000 in 12 months is more than the principal amount. How will people be able to pay that. Fg should look into this ooooo
Comfort Emiola
June 9, 2020 at 2:21 pm
I submitted my own form on 16/05/2020 and they acknowledged receiving my form and.promised to get back to me in short time,, but yet to hear from them again, I don’t know what step to take now again
Emmanuel Bassey Udoh
June 13, 2020 at 4:12 am
I think you are not getting the whole thing here, the interest rate is per Annual not monthly, the interest rate is 5percent for a year, that’s if you pay back the loan in one year, but it exist one year their interest rate will increase to 9percent per annual. So check out your calculation.
Commy
June 9, 2020 at 11:03 am
What is fg saying about the interest rate which exceed the principal amount payable in 12 months. I.e #500,000*9%=#45000.#45000*12 months=#540,000*3years=#1,620,000. I use to think that aid given to Farmers where usually at very low or no interest rate.
Anonymous
June 9, 2020 at 10:27 pm
I think the rate is 9% par annum not monthly,so check your calculation
Chris Omekwe
June 9, 2020 at 3:32 pm
A regular Nigerian news browser or searcher, I’m disappointed that the information of the availability of this loan was not adequately disseminated. Is it too late now :this piece didn’t even say if applications are still invited and how and where to apply to
Realist
June 9, 2020 at 3:45 pm
They already know where and who will receive what. The process is loaded heavily with political undertones. The arrangements is just a decor to fool the rest of us. If my observation is incorrect, let CBN published all beneficiary after the disbursements.
Adebanke
June 9, 2020 at 10:22 pm
I applied for the loan, but my account number was not requested.my form was acknowledged to have been received and promised to get back shortly since 2/6/2020. Please, what is the next line of action. Thanks
ADAMU GLORY
June 10, 2020 at 11:10 pm
They requested for my account details but i logged out to imput the information, they rejected me and said my Ive already submitted.
Nsarum
June 11, 2020 at 8:08 am
My candid advice to every person in leadership is to transparent in whatever scheme that is rolled out in order foster trust in the mind of the followers, knowing that every thing you’re gathering here on earth is vanity. I can’t envy you greed and myopic leader who is acquiring everything, both the one that is meant for the poor.
Collins
June 12, 2020 at 5:27 pm
Pls sir/madam send me the website where I can apply for the loan. Thanks
Aiyedun Okpeme Glory
June 13, 2020 at 9:32 am
Pls sir I need the web site and link to apply
Nwani Ejike Edmond
June 17, 2020 at 10:50 am
Please sir how can I apply for the loan?
Anonymous
June 13, 2020 at 3:39 pm
Please send the website or link to apply on the loan
Onyemere pet onye
June 16, 2020 at 10:18 am
Pls where can I apply for the loan.
Evang.comr.Mira Nwa God
June 16, 2020 at 11:16 am
Pls send the websites here so that people that want to key in will freely do so.and for the people in control of this money transaction, always know that GOD is watching in all you guys are doing tanks
Aondona Christopher
June 26, 2020 at 10:13 pm
I need a loan so that I can expand my card please.
EZEPUE MABEL OLUCHUKWU
June 16, 2020 at 5:00 pm
Please i applied since last month and attached my statement of account and i received their acknowledgement mail but up til now i have not heard from them again.
NSIDIBE obot
June 16, 2020 at 6:48 pm
What are the requirement.when you want to applied the covid19 loan directly with Central bank of Nigeria. If approximately we process it would it been possible to have it
Bello lawan
June 17, 2020 at 2:57 am
Please I need apply to this form,because i have venture business, provision enterprises,i am very eager to get assistance, because this lockdown was effect my business,
Cyrilnelson ogbonna
June 17, 2020 at 4:16 pm
I applied for the loan and they approved a certain account to be paid into my account but up till now I have not received the money and it’s over a week now since I submitted my account details online
Anonymous
June 18, 2020 at 9:30 pm
My brother the same thing with me oo
Edet Isangedighi
June 17, 2020 at 10:11 pm
For the past two weeks I have been trying to apply for the loan online but it has not been easy for me,am married and wife is currently pregnant she was teaching in private school before the outbreak of this global pandemic,my people it’s not easy on our side our plan now is to start up business we have a shop the main challenge is the finance to start up. We are ready to comply with the laydown rule until we pay off the capital. Please.
Ashiru sulaiman
June 17, 2020 at 11:12 pm
please I need to apply this form,I am fermer, that is maen purpose of loan
Idris tijjani ladan
June 18, 2020 at 1:48 pm
Please I need apply to this form because i have venture business plastics I am very eager to get this assistance because this lockdown was effect my business please sir
shu'aibu sabo
June 18, 2020 at 5:11 pm
Please I want apply jaw can I do?
David
June 19, 2020 at 1:47 pm
How can one apply
Emmanuel Oguori
June 20, 2020 at 9:07 am
Am Mr Emmanuel Oguori from Delta State,I want to use the money to register my oil and gas industry from Abuja, God bless Nigeria
Hussein muhammed
June 20, 2020 at 1:14 pm
How can I apply for the loan? Please I need the link.
abdullahi
June 20, 2020 at 3:50 pm
i want to apply but i dont know how to apply sir can you show me or tell how do i do
Justice James
June 21, 2020 at 1:31 pm
Justice James
Adavba Emmanuel
June 22, 2020 at 2:09 am
Pls is d household loan application closed
Yusuf abubakar
June 22, 2020 at 11:21 pm
I have applied since 17 June but no any information yet ,am I not qualify or what is the problem
Eze Blessing Rita
June 22, 2020 at 11:23 pm
How do I apply pls
Azeez Ibrahim Abiodun
June 23, 2020 at 12:31 pm
Good day!
My loan was approved and I have submitted my account details since on 13th of this month. Yet my account has’t been credited.
ONWE SAMPSON NWUBE
June 26, 2020 at 8:11 am
I applied,got a automated massage in my email but till now i have not gotten massage as regards to uploading my account number.
Anonymous
June 24, 2020 at 1:30 am
Please i want to apply for it ?
Aimasiko Abiodun R
June 25, 2020 at 1:37 pm
I thank God for the help u bring out sir/ ma, my question is like how many weeks are my to wait as I have applied for the from.
Thank you, God bless you.
Anonymous
June 27, 2020 at 4:31 pm
Pls
i want to apply for this loan this covid 19
Have effected my b nnes hw do go about it pls
Okachi Moses
June 27, 2020 at 8:39 pm
please help me out sir. I am a successful applicant .I have given my bank details but is about 96hrs now I have not received the credit alert. What do I do
Igbasanmi sunday
June 28, 2020 at 11:40 am
Pls sir which website because i want to apply for the covid-19 loan pls help me out sir.
Olaitan Kolawole
June 30, 2020 at 2:13 am
The website to apply is: https://nmfb.com.ng/covid-19-support/
You can try to apply, though I don’t know if they are still accepting new applications.
Olamijulo Catherine
June 30, 2020 at 6:19 pm
I have tried to apply for the loan but its not opening. I want to be a beneficiary of this covid-19 loan. To support my business. Please help me